Tandem CEO: "We ended up attracting the wrong customers…The people who are good at saving money..."

Paul_Herring

Tandem CEO decides to get rid of the people with money because they were costing him money, to prey on those with rather less:

https://sifted.eu/articles/tandem-fundraise-2020-cto-left/

Tandem caused a stir last month when it announced a new £5.99/monthly fee for its credit card. The charge amounts to £72 per year, while American Express Platinum cards and RBS cards cost just £25.

But Knox defended the move, explaining the card’s 0.5% cashback offering brought in users who didn’t need to borrow and were exploiting the free-offering.

“We ended up attracting the wrong customers…The people who are good at saving money are actually the people who are f**king loaded… We realised we were going to have to let those guys go. They were losing us money.”

Malkytheheed

Exactly what I said back in January. You could see it coming a mile off. It was an idiotic business model. 
https://forums.moneysavingexpert.com/discussion/comment/76715078#Comment_76715078

born_again

Would love to see what the FCA have to say on his statement. 

Paul_Herring

born_again said:

Would love to see what the FCA have to say on his statement. 

"He's an idiot" I'd imagine.

I can't help thinking he might be related to Gerald Ratner.

onlyfoolsandparking

CEO sounds like a real scumbag!!!

born_again

Paul_Herring said:

born_again said:

Would love to see what the FCA have to say on his statement. 

"He's an idiot" I'd imagine.

I can't help thinking he might be related to Gerald Ratner.

Maybe remind him about responsible lending....

Ergates

born_again said:

Would love to see what the FCA have to say on his statement. 

Probably "What exactly did you think was going to happen?"

Paul_Herring

Ergates said:

born_again said:

Would love to see what the FCA have to say on his statement. 

Probably "What exactly did you think was going to happen?"

Or possibly suggest a course in business acumen.

Fingerbobs

He sounds like a charming gentleman! 

redux

From the article:

Tandem, the UK digital bank with nearly 1m customers, is within weeks of securing a fresh round of funding, according to people close to the deal.

The cash injection, which is half a year late, will be met with a sigh of relief at the company, despite reportedly falling well short of the initial £100m target (and “unicorn” valuation). Multiple sources say the amount raised is instead closer to £50m.

Hmm, I wonder if the people considering lending money to Tandem might also be reviewing whether they have the right customer profile.